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CITY OF TSHWANE METROPOLITAN MUNICIPALITY
CONTRACT NO: CSS 38-2014/15
TENDER FOR THE SALE OF COUNCIL PROPERTY Erf 11690 MAMELODI EAST
06 FEBRUARY 2015
NAME OF BIDDER: …………………………………………………………….. VENDOR NUMBER ……………………………..
Prepared by: City of Tshwane Metropolitan Municipality 175 C de Wet
PRETORIA 0001 Tel: (012) 358 0343
BID CLOSES 26 FEBRUARY 2015
CITY OF TSHWANE
METROPOLITAN MUNICIPALITY
DEPARTMENT: CORPORATE AND SHARED SERVICES
BIDS ARE HEREBY INVITED FROM SUPPLIERS FOR THE FOLLOWING BID:
Bid No Description Dept. Contact Person
Closing date
CSS 38-2014/15
Tender for the Sale of council Property:ERF 11690 Mamelodi East
CSS
Ms J Maenetsa @012 358 7389
26 February 2015 @ 10:00
Bid documents are obtainable on the 06 FEBRUARY 2015 from 07h30 to 15h30 (Mondays to Friday) at the
CoT offices, 175 C de Wet building, PRETORIA, Tel (012) 358 9999.
Duly completed bids and supporting documents must be deposited in the bid box situated at the 175 C de Wet
building not later than 10h00 on the 26 February 2015 where bids will be opened in public.
Queries relating to the issue of these documents may be addressed to Ms J Maenetsa at, Tel No 012 358 7389
Bids received after the closing date and time will not be considered. CoT does not bind itself to accept the lowest
or any other bid in whole or in part.
LIST OF RETURNABLE DOCUMENTS THAT SHOULD FORM
PART OF THE BID DOCUMENT.
1. Invitation to Bids MBD1
2. Tax Clearance certificate MBD2
3. Pricing Schedule- refer to Scope of
work
Refer to
Scope of
work
4. Declaration of Interest
MBD4
5 Contract Form MBD 7.1
6. Contract Form – Sale of Goods MBD 7.3
7. Declaration of past supply chain
Management practice
MBD8
8. Certificate Of Independent Bid
Determination
MBD 9
9. Company registration certificate
10. Tax Clearance certificate
11. Rates and Taxes
.
CITY OF TSHWANE METRO MUNICIPALITY
Corporate and Shared Services
BID NAME
Tender for the Sale of council Property: ERF 11690 Mamelodi East
BID NUMBER
CSS 38-2014/15
Scope 1. Tenders are invited from interested persons for the sale of the following property. 1.1. PROPERTY : Erf 11690 Mamelodi East EXTENT : 535 m² ZONING : Residential 2. CONDITIONS OF TENDER 2.1. The Municipality reserves the right to request that presentations to the Municipality
be illustrated and expanded upon in any suitable manner. 2.2. The Municipality will not necessarily accept the highest or any bid. 2.3. The market value of the property as determined by the Municipal Valuer will be the
minimum acceptable value, any offer lower than the current market value will be disqualified. If consensus in respect of the proposed conditions of sale for the above mentioned property has not been reached and Council approval for such sale not been obtained before 30 June 2015 the market value will be reconsidered by the Municipal Valuer.
2.4. The Municipality will notify the successful tenderer in writing by registered mail of
the acceptance of his/her tender. 2.5. The successful tenderer must within 30 (thirty) days after he/she has been given
such notice, enter into a formal deed of sale with the Municipality. 2.6. If the Municipality accepts the tender of a person who tenders as an agent or as a
trustee for a company/close corporation to be founded, and if the company/close corporation is not registered for whatever reason or if it is registered, but refuses or fails for some or other reason is unable to accept and ratify the deed, such agent or trustee will be held liable for compliance with all the conditions of the said deed of sale in his/her personal capacity.
2.7. The date on which the Municipality's Bid Adjudication Committee approves the
awarding of the tender, shall be considered the date on which the successful tenderer was notified of the Municipality's acceptance of his tender, despite the fact that written notice of this acceptance was issued at a date later than the said Bid Adjudication Committee's approval.
3. GENERAL CONDITIONS OF SALE
3.1. The purchase price is payable as follows: 3.1.1 The amount will be payable upon the signing of the contract. 3.2. The Municipality's attorneys will attend to the transfer of the property after the
purchase price has been paid or properly guaranteed. 3.3. The purchaser is liable for all transfer and accompanying costs, including transfer
duties which he/she must pay to the Municipality's attorneys on demand. 3.4. The property is sold subject to the existing title deed conditions and provisions of
the Tshwane Town-planning Scheme 2008, applicable at the time of the sale of the property.
3.5. Possession of the property will be given to the purchaser from the date of transfer,
from which date it will be exclusively at the risk of the purchaser. The purchaser will be liable for all municipal rates and levies with regard to the property.
3.6. The Municipality is not liable for any defects, latent or patent, in or on the property.
The size of the property as indicated is not guaranteed. The purchaser will be
responsible for the removal of illegal structures/occupants that may have occupied
the land.
3.7. Access to the property and the disposal of stormwater there from shall be to the
satisfaction of the Chief of Police and Executive Strategic Director: Services
Infrastructure.
3.8. The purchaser should comply with all conditions normally applicable to the selling of property assets as required by the CoT’s Departments. 3.9. The purchaser shall not have the right to sell the property or any portion thereof
without the prior written consent of the Municipality, before it has been transferred into his name.
3.10. Plans in respect of buildings to be erected on the property will be considered by the
Municipality. The actual building of improvements on the property is however prohibited until the property is registered in the purchaser’s name.
3.11.1. The purchaser shall pay the normal tariffs to obtain a meter as well as the full fees
to obtain a connection to services. 3.11.2. All costs incurred as a result of the moving of, or change of a private or municipal
sewer, electrical network of water or Stormwater system that is necessitated by this transaction shall be for the account of the purchaser.
3.12. That should no successful tender be received the property be offered for sale by
way of public tender. 3.13. In the case of vacant land.
3.13.1 The purchaser shall develop the property within a period of 3 (three) years from the
date of transfer in accordance with the applicable land use rights and to the extent stipulated in each transaction, and further complete such development within this prescribed period, failing which the contract of sale of the property shall lapse. The development requirements specific to each transaction shall be included as part of the restrictive conditions to be registered against the Title Deed of the property.
3.13.2 No bond shall be registered on the property without the written consent of the
Accounting Officer or his delegates, and subject to the conditions that may be applicable.
(a) The purchaser shall not alienate, encumber or transfer the property in any
manner whatsoever, during the abovementioned 3 (three) year period. Should the purchaser be in breach of this obligation to develop the property within the abovementioned 3 (three) year period, this conditions shall remain of full force and effect after the lapse of the said period.
(b) In the event that the purchaser is in breach of his obligation to develop the
property within the said 3 (three) year period, the Municipality shall have the right to re-transfer ownership of the property back to the Municipality, against repayment of the original selling price paid by the purchaser, without any interest.
(C) In the event that a bond has since been registered over the property, the
purchaser shall at his own cost, be obliged to cancel such bond before the property is transferred back to the Municipality.
(d) In the event of the cancellation of the contract of sale and the retransfer of
ownership of the property to the Municipality, the purchaser shall have no claim for compensation in respect of all or any improvements of whatsoever nature to the property, against the Municipality.
The purchaser unconditionally accepts the risk of completing the agreed development of the property within the prescribed period.
(e) In the event of the cancellation of the contract of sale and retransfer of
ownership of the property to the Municipality, the purchaser shall have no claim for damages against the Municipality.
(f) In the event where the purchaser fails to take the required steps, the CoT reserves the right to take any reasonable steps to effect the cancellation of the bond and to recover expenditure incurred from the purchaser.
4. SPECIFIC CONDITIONS OF SALE 4.1. In the event that the successful bidder fails to comply with condition 2.5 the property
be offered to the second successful bidder. 4.2. Each bidder is limited to purchase one residential property if an offer is made on
several tenders, only one property can be awarded. 4.3. The property be restricted to be utilized solely for residential purposes. 4.4. That in the event that the development does not occur within the stipulated period the
said property would revert back to Council at the same price it was sold for.
5. FUNCTIONALITY CRITERIA The minimum qualifying criteria for a bid to be evaluated is 60 points. Bids that do not
meet the minimum qualifying points will not be evaluated
Preference will be given to individuals who: Points
1. Is female 15
2. Has a disability 10
3. First time property owner 30
4. Promotion of individual residing in CoT municipal area 30
5. Is youth under the age of 35 15
TOTAL OF POINTS ALLOCATED MUST ADD UP TO: 100
5.1. The following documents are required to enable the City of Tshwane to evaluate the
tender:
A sworn affidavit document confirming that the bidder does not own , or that a residential property is not registered in his/her name and lack thereof will result in point 3 on the critical qualifying criteria not been allocated.
Water and lights account to support point 4 on the Critical Criteria.
Copy of an Identity Document to Support point 1 and 5 on the Critical Criteria.
Medical Certificate to support point 2 on the Critical Criteria.
Scoring formula
According to our policy section 13 sub-sections 13.1 and 13.2 of: SALE AND LETTING OF ASSETS
The preference point system prescribed in the PPPFA and the Preferential Procurement Regulations, 2011 are not applicable to the sale ans letting of assets.
In instances where assets are sold or leased by means of advertised competitive bids or written price quotations or by auction, the award must be made to the highest bidder.
Validity period
The Validity period for the tender after closure will be 90 days Period for which the bid will be advertised
The bid will be advertised on the COT Notice Board, Website and National Newspaper for Fourteen (14) days
PRICING DATA
CONTENTS
2.1 PRICING INSTRUCTIONS....................................................................................... 9
2.2 PRICE SCHEDULE ................................................................................................. 0
C2.1 PRICING INSTRUCTIONS
1. General
1.1 This section provides the tenderer with guidelines and requirements with regard to
the completion of the Price Schedule. The Schedule has to be completed in black ink
and the tenderer is referred to the Tender Specifications in regard to the correction of
errors.
1.2 The Price Schedule shall be read with all the documents which form part of this
Contract.
1.3 The following words shall have the meanings hereby assigned to them:
Unit: The unit of measurement for each item of work in terms of the
Specifications and the Project Specifications.
Quantity: The number of units of work for each item.
Rate: The payment per unit of work at which the tenderer tenders to do the
work.
Amount: The product of the quantity and the rate tendered for an item.
Lump sum: An amount tendered for an item, the extent of which is described in the
Price Schedule, the Specification and the Scope of Work, but the
quantity of work of which is not measured in any units.
2. Units of Measurements
The units of measurement described in the Price Schedule are metric units.
Abbreviations used in the of Quantities are as follows:
mm = millimetre h = hour
m = metre kg = kilogram
km = kilometre t = ton (1000kg)
m2 = square metre no. = number
m2.pass = square metre pass sum = lump sum
ha = hectare MN = meganewton
m3 = cubic metre MN.m = meganewton-metre
m3.km = cubic metre-kilometre PC sum = Prime Cost sum
l = litre Prov sum= Provisional sum
kl = kilolitre % = Per cent
MPa = megaspascal kW = kilowatt
3. Rates
This price list has columns for quantity, rate and price for the goods. Entries in these
columns are made as follows:
3.1. If the Supplier is to be paid an amount for the goods which is a fixed price for an
item or a fixed price for each of a series of items, the tendering supplier enters the
amount in the price column only, the other two columns being left blank.
3.2. If the Supplier is to be paid an amount for the goods which is the unit rate for each
item multiplied by the quantity of the item supplied, (i.e. a ‘Price Schedule’
arrangement) - the tendering supplier enters the rate which is then multiplied by the
quantity (which has been entered either by him or by the Purchaser) to produce the
price which is also entered.
3.3. If the Supplier is to be paid an amount for an item of the goods which is the rate
multiplied by the quantity supplied -whatever that quantity turns out to be (i.e. a
‘schedule of rates’ arrangement) - the tendering supplier enters the rate only, the
other two columns being left blank. The tendering supplier’s offer cannot include a
total of the prices which covers all the items which the Supplier has to supply if any
of the supply is dealt with using items with a rate only.
3.4. Rate only entries must not be made for work covered by other items.
CORRECTION OF ENTRIES MADE BY TENDERER
Any entry made by the Tenderer in the Price Schedule, forms, etc, which the tenderer
desires to change, shall not be erased or painted out. A line shall be drawn through the
incorrect entry and the correct entry shall be written above in black ink and the full
signature of the Tenderer shall be placed next to the correction.
PRICE SCHEDULE
DESCRIPTION PROPERTY PRICE OFFERED
1.1 PROPERTY EXTENT ZONING RESERVE SALE
Erf 11690 Mamelodi East 535 m² Residential 5
The undersigned, who warrants that he / she is duly authorised to do so on behalf of the enterprise, confirms that
the contents of this schedule are within my personal knowledge and are to the best of my belief both true and
correct.
Person Authorized to sign Tender:
FULL NAME (IN BLOCK LETTERS):
SIGNATURE:
VERY IMPORTANT NOTICE ON DISQUALIFICATIONS:
A bid not complying with the peremptory requirements stated hereunder will be regarded as
not being an “Acceptable bid”, and as such will be rejected.
“Acceptable bid” means any bid which, in all respects, complies with the conditions of bid
and specifications as set out in the bid documents, including conditions as specified in the
Preferential Procurement Policy Framework Act (Act 5 of 2000) and related legislation as
published in Government Gazette number 22549, dated 10 August 2001, in terms of which
provision is made for this policy.
1. If any pages have been removed from the bid document, and have therefore not been
submitted, or a copy of the original bid document has been submitted.
2. If the bid document is completed using a pencil. Only black ink must be used to
complete the bid document.
3. THE BID HAS NOT BEEN PROPERLY SIGNED BY A PARTY HAVING THE
AUTHORITY TO DO SO ACCORDING TO THE EXAMPLE OF “AUTHORITY FOR
SIGNATORY”
4. No authority for signatory submitted (printed on bidder’s letter head) – See example,
where it is stated that a duly signed and dated original copy of the company’s
relevant resolution (for each specific bid) of their members or their board of directors,
must be submitted.
5. The bidder attempts to influence, or has in fact influenced the evaluation and/or
awarding of the contract.
6. The bid has been submitted after the relevant closing date and time.
7. If any bidder who during the last five years has failed to perform satisfactorily on a
previous contract with the municipality, municipal entity or any other organ of state
after written notice was given to that bidder that performance was unsatisfactory.
8. The accounting officer must ensure that irrespective of the procurement process
followed, no award may be given to a person –
(a) who is in the service of the state, or;
(b) if that person is not a natural person, of which any director, manager, principal
shareholder or stakeholder, is a person in the service of the state; or;
(c) Who is an advisor or consultant contracted with the municipality in respect of
contract that would cause a conflict of interest.
9. Bid offers will be rejected if the bidder or any of his directors is listed on the Register of
Bid Defaulters in terms of the Prevention and Combating of Corrupt Activities Act of
2004 as a person prohibited from doing business with the public sector
10. Bid offers will be rejected if the bidder has abused the CoT’s Supply Chain Management
System.
11. Failure to attach a copy of a valid signed Joint Venture/Consortium agreement (if
applicable) to the bid document.
12. Failure to complete and sign the certificate of independent determination or disclosing of
wrong information.
13. An updated record of payment of rates and taxes (three months) and services to the
relevant Municipality must be attached. Failure to do so will invalidate the tender
submitted. In case were a bidder is leasing a property, lease agreement and signed or
letter from the landlord or landlady should be attached. Bidders that are residing in
Traditional lands must attach an updated letter from the Tribal Authority falling within the
bid period. If payment arrangement has been made to relevant municipality, proof must
be attached.
14. None attachment of CK/CM Certificate
Failure to submit the above will lead to immediate disqualification
----------------------------------- Bidder
CERTIFICATE OF AUTHORITY FOR SIGNATORY
Status of concern submitting tender (delete which ever is not applicable.)
COMPANY /PARTNERSHIP /ONE-PERSON BUSINESS / CLOSE CORPORATION/ JOINT VENTURE
A. COMPANIES
If the bidder is a company, a certified copy of the resolution of the Board of Directors, personally signed by the chairperson of the board, authorizing the person to signs this bid to do so, as well as to sign any contract resulting from this bid and any other documents and correspondence in connection with this bid or contract on behalf of the company must be submitted with this Bid.
An example is shown below:
By resolution of the board of Directors on …………20….., Mr. / Ms …………………………………has been duly authorized to sign all documents in connection with BID NO. ………………………
SIGNED ON BEHALF OF THE COMPANY: ……………………………………………………………..
IN HIS CAPACITY AS: …………………………………………………………………………………….
DATE: ………………………………………………………………………………………………………
SIGNATURE OF SIGNATORY:…………………………………………………………………………….
WITNESSES: 1. …………………………………………………………………………………………...
2. ……………………………………………………………………………………………..
B. PARTNERSHIP
The following particulars in respect of every partner must be furnished and signed by every partner:
Full name of partner Residential address Signature
………………………….. ………………………………………………. ………………..
………………………….. ………………………………………………. ………………..
………………………….. ………………………………………………. ………………..
We, the undersigned partners in the business trading as,………………………………………………..
Hereby authorize …………………………………….. ………………………… to sign this bid as well s any contract resulting from the bid and any other documents and correspondence in connection with this bid / or contract on our behalf.
……………………………… …………………………………. ………………………….
Signature Signature Signature
……………………………… …………………………………. ………………………….
Date Date Date
C. ONE-PERSON BUSINESS
I, the undersign ……………………………………….hereby confirm that I am the sole owner of the business
trading as ………………………………………………………………….
……………………………………….. ………………………………
Signature date
D. CLOSE CORPORATION
If the case of a close corporation submitting a bid, a certified copy of the founding Statement of such corporation shall be included with the Bid, together with a resolution by its members authorizing a member or other official of the corporation to sign the documents and correspondence in connection with this bid or contract on behalf of the company must be submitted with this Bid.
An example is shown below:
By resolution of the members at the meeting on the ………………………..200…….at ………………………Mr. / Ms …………………………………whose signature appear below, has been duly authorized to sign all documents in connection with BID NO.
………………………
SIGNED ON BEHALF OF THE CLOSE CORPORATION: ………………………………………………..
IN HIS / HER CAPACITY AS:…………………………………………………………………….
DATE: ………………………………………………………………………………………………
SIGNATURE OF SIGNATORY:…………………………………………………………………….
WITNESSES: 1. ……………………………………………………………………………………...
2.………………………………………………………………………………………..
Certificate of Authority for Joint Ventures
This Returnable Schedule is to be completed by joint ventures.
We, the undersigned, are submitting this bid offer in Joint Venture and hereby authorize
Mr./Ms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , authorized signatory of the
company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .,
acting in the capacity of lead partner, to sign all documents in connection with the bid offer
and any contract resulting from it on our behalf.
NAME OF FIRM ADDRESS DULY AUTHORISED SIGNATORY
Lead partner
Signature. . . . . . . . . . . . . Name …….. Designation
Signature. . . . . . . . . . . . . Name …….. Designation
Signature. . . . . . . . . . . . . Name …….. Designation
Signature. . . . . . . . . . . . . Name …….. Designation
MBD 1 INVITATION TO BID
YOU ARE HEREBY INVITED TO BID FOR REQUIREMENTS OF THE CITY OF TSHWANE METROPOLITAN MUNICIPALITY
BID NUMBER: CSS38 -2014/15 CLOSING DATE: 26 FEBRUARY 2015 CLOSING TIME: 10:00
DESCRIPTION : Tender for the Sale of Council Property: ERF 11690 Mamelodi East The successful bidder will be required to fill in and sign a written Contract Form (MBD 7). BID DOCUMENTS MAY BE POSTED OR DEPOSITED TO: 175 C de Wet building Corner E’skia Mphahlele and FW Nkomo drive Pretoria 0001 Bidders should ensure that bids are delivered timeously to the correct address. If the bid is late, it will not be accepted for consideration. The bid box is generally open 24 hours a day, 7 days a week. ALL BIDS MUST BE SUBMITTED ON THE OFFICIAL FORMS – (NOT TO BE RE-TYPED)
THIS BID IS SUBJECT TO THE PREFERENTIAL PROCUREMENT POLICY FRAMEWORK ACT AND THE PREFERENTIAL PROCUREMENT REGULATIONS, 2011, THE GENERAL CONDITIONS OF CONTRACT (GCC) AND, IF APPLICABLE, ANY OTHER SPECIAL CONDITIONS OF CONTRACT
NB: NO BIDS WILL BE CONSIDERED FROM PERSONS IN THE SERVICE OF THE STATE (as defined in Regulation 1 of the Local Government: Municipal Supply Chain Management Regulations)
THE FOLLOWING PARTICULARS MUST BE FURNISHED (FAILURE TO DO SO MAY RESULT IN YOUR BID BEING DISQUALIFIED)
NAME OF BIDDER…………………………………………………………………………………………………………………… POSTAL ADDRESS…………………………………………………………………………………………………………………. STREET ADDRESS………………………………………………………………………………………………………………… TELEPHONE NUMBER CODE……………NUMBER……………………………………………………………………………….. CELLPHONE NUMBER ………………………………………………………………………………………………………………… FACSIMILE NUMBER CODE …………
NUMBER………………………………………………………………………………… E-MAIL ADDRESS………………………………………………………………………………………………………………….. VAT REGISTRATION NUMBER………………………………………………………………………………………………… HAS AN ORIGINAL AND VALID TAX CLEARANCE CERTIFICATE BEEN ATTACHED? (MBD 2) YES/NO HAS A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE BEEN SUBMITTED? (MBD 6.1) YES/NO IF YES, WHO WAS THE CERTIFICATE ISSUED BY? AN ACCOUNTING OFFICER AS CONTEMPLATED IN THE CLOSE CORPORATION ACT (CCA) □ A VERIFICATION AGENCY ACCREDITED BY THE SOUITH AFRICAN NATIONAL ACCREDITATION SYSTEM (SANAS) □ A REGISTERED AUDITOR □ (Tick applicable box) (A B-BBEE STATUS LEVEL VERIFICATION CERTIFICATE MUST BE SUBMITTED IN ORDER TO QUALIFY FOR PREFERENCE POINTS FOR B-BBEE)
ARE YOU THE ACCREDITED REPRESENTATIVE IN SOUTH AFRICA FOR THE GOODS/SERVICES/WORKS OFFERED ? YES/NO (IF YES ENCLOSE PROOF) SIGNATURE OF BIDDER ……………………………………………………………………………………………………………….. DATE:……………………………………………………………… CAPACITY UNDER WHICH THIS BID IS SIGNED…………………………………………………………………………………………… TOTAL BID PRICE…………………………………… TOTAL NUMBER OF ITEMS OFFERED _______________________________________________________________________________________________ ANY ENQUIRIES REGARDING THE BIDDING PROCEDURE MAY BE DIRECTED TO: Municipality / Municipal Entity: City of Tshwane Metropolitan Municipality Department: Supply Chain Management Unit Contact Person: Mpho Moshane Tel: 012 358 4398 ANY ENQUIRIES REGARDING TECHNICAL INFORMATION MAY BE DIRECTED TO: Contact Person: Ms J Maenetsa Tel: 012 358 7389
MBD 2
TAX CLEARANCE CERTFICATE REQUIREMENTS It is a condition of bid that the taxes of the successful bidder must be in order, or that satisfactory arrangements have been made with South African Revenue Service (SARS) to meet the bidder’s tax obligations. 1 In order to meet this requirement bidders are required to complete in full the attached form TCC 001 “Application for a Tax Clearance Certificate” and submit it to any SARS branch office nationally. The Tax Clearance Certificate Requirements are also applicable to foreign bidders / individuals who wish to submit bids. 2 SARS will then furnish the bidder with a Tax Clearance Certificate that will be valid for a period of 1 (one) year from the date of approval. 3 The original Tax Clearance Certificate must be submitted together with the bid. Failure to submit the original and valid Tax Clearance Certificate will result in the invalidation of the bid. Certified copies of the Tax Clearance Certificate will not be acceptable.
4 In bids where Consortia / Joint Ventures / Sub-contractors are involved, each party must
submit a separate Tax Clearance Certificate. 5 Copies of the TCC 001 “Application for a Tax Clearance Certificate” form are available from any SARS branch office nationally or on the website www.sars.gov.za. 6 Applications for the Tax Clearance Certificates may also be made via eFiling. In order to use this provision, taxpayers will need to register with SARS as eFilers through the website www.sars.gov.za.
MBD 4
DECLARATION OF INTEREST 1. No bid will be accepted from persons in the service of the state¹. 2. Any person, having a kinship with persons in the service of the state, including a blood
relationship, may make an offer or offers in terms of this invitation to bid. In view of possible allegations of favouritism, should the resulting bid, or part thereof, be awarded to persons connected with or related to persons in service of the state, it is required that the bidder or their authorised representative declare their position in relation to the evaluating/adjudicating authority.
3 In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.
3.1 Full Name of bidder or his or her representative:……………………………………………..
3.2 Identity Number: ………………………………………………………………………………….
3.3 Position occupied in the Company (director, trustee, hareholder²):………………………..
3.4 Company Registration Number: ……………………………………………………………….
3.5 Tax Reference Number:…………………………………………………………………………
3.6 VAT Registration Number: ……………………………………………………………………
3.7 The names of all directors / trustees / shareholders members, their individual identity numbers and state employee numbers must be indicated in paragraph 4 below.
3.8 Are you presently in the service of the state? YES / NO
3.8.1 If yes, furnish particulars. ….……………………………………………………………
……………………………………………………………………………………………..
¹MSCM Regulations: “in the service of the state” means to be –
(a) a member of – (i) any municipal council; (ii) any provincial legislature; or (iii) the national Assembly or the national Council of provinces;
(b) a member of the board of directors of any municipal entity; (c) an official of any municipality or municipal entity; (d) an employee of any national or provincial department, national or provincial public entity or
constitutional institution within the meaning of the Public Finance Management Act, 1999 (Act No.1 of 1999);
(e) a member of the accounting authority of any national or provincial public entity; or
(f) an employee of Parliament or a provincial legislature.
² Shareholder” means a person who owns shares in the company and is actively involved in the management of the company or business and exercises control over the company.
3.9 Have you been in the service of the state for the past twelve months? ………YES / NO
3.9.1 If yes, furnish particulars.………………………...…………………………………….. …………………………………………………………………………………………….
3.10 Do you have any relationship (family, friend, other) with persons in the service of the state and who may be involved with the evaluation and or adjudication of this bid? ………………………………… YES / NO
3.10.1 If yes, furnish particulars.
……………………………………………………………………………… ………………………………………………………………………… 3.11 Are you, aware of any relationship (family, friend, other) between any other bidder and any persons in the service of the state who may be involved with the evaluation and or adjudication of this bid? YES / NO
3.11.1 If yes, furnish particulars ………………………………………………………………………………… ……………………………….……............................................................
3.12 Are any of the company’s directors, trustees, managers,
principle shareholders or stakeholders in service of the state? YES / NO
3.12.1 If yes, furnish particulars. ………………………………………………………………………………. ………………………………………………………………………………. 3.13 Are any spouse, child or parent of the company’s directors, trustees, managers, principle shareholders or stakeholders in service of the state?
YES /NO
3.13.1 If yes, furnish particulars. ………………………………………………………………………………. ……………………………………………………………………………….
3.14 Do you or any of the directors, trustees, managers, principle shareholders, or
stakeholders of this company have any interest in any other related companies or business whether or not they are bidding for this contract. YES / NO
3.14.1 If yes, furnish particulars:
…………………………………………………………………………….
4. Full details of directors / trustees / members / shareholders.
Full Name Identity Number State Employee
Number
………………………………….. …………………………………….. Signature Date
…………………………………. ……………………………………… Capacity Name of Bidder
MBD 7.1
CONTRACT FORM - PURCHASE OF GOODS/WORKS THIS FORM MUST BE FILLED IN DUPLICATE BY BOTH THE SUCCESSFUL BIDDER (PART 1) AND THE PURCHASER (PART 2). BOTH FORMS MUST BE SIGNED IN THE ORIGINAL SO THAT THE SUCCESSFUL BIDDER AND THE PURCHASER WOULD BE IN POSSESSION OF ORIGINALLY SIGNED CONTRACTS FOR THEIR RESPECTIVE RECORDS.
PART 1 (TO BE FILLED IN BY THE BIDDER) 1. I hereby undertake to supply all or any of the goods and/or works described in the attached
bidding documents to (name of institution)………..…………………………. in accordance with the requirements and specifications stipulated in bid number………..……….. at the price/s quoted. My offer/s remain binding upon me and open for acceptance by the purchaser during the validity period indicated and calculated from the closing time of bid.
2. The following documents shall be deemed to form and be read and construed as part of this
agreement:
(i) Bidding documents, viz - Invitation to bid; - Tax clearance certificate; - Pricing schedule(s); - Technical Specification(s); - Preference claims for Broad Based Black Economic Empowerment Status Level
of Contribution in terms of the Preferential Procurement Regulations 2011; - Declaration of interest; - Declaration of bidder’s past SCM practices; - Certificate of Independent Bid Determination; - Special Conditions of Contract;
(ii) General Conditions of Contract; and (iii) Other (specify)
3. I confirm that I have satisfied myself as to the correctness and validity of my bid; that the price(s) and rate(s) quoted cover all the goods and/or works specified in the bidding documents; that the price(s) and rate(s) cover all my obligations and I accept that any mistakes regarding price(s) and rate(s) and calculations will be at my own risk.
4. I accept full responsibility for the proper execution and fulfilment of all obligations and conditions
devolving on me under this agreement as the principal liable for the due fulfillment of this contract.
5. I declare that I have no participation in any collusive practices with any bidder or any other person
regarding this or any other bid. 6. I confirm that I am duly authorised to sign this contract.
NAME (PRINT) …………………………………………. CAPACITY ………………………………………….
SIGNATURE …………………………………………. NAME OF FIRM ………………………………………….
DATE ………………………………………….
WITNESSES 1 …….…………… 2. …………………… DATE…………………….
MBD 7.1
CONTRACT FORM - PURCHASE OF GOODS/WORKS
PART 2 (TO BE FILLED IN BY THE PURCHASER)
1. I……………………………………… in my capacity as…………………………………………………...….. accept your bid under reference number ………………dated………………………for the supply of goods/works indicated hereunder and/or further specified in the annexure(s).
2. An official order indicating delivery instructions is forthcoming. 3. I undertake to make payment for the goods/works delivered in accordance with the terms and
conditions of the contract, within 30 (thirty) days after receipt of an invoice accompanied by the delivery note.
ITEM NO.
PRICE (ALL APPLICABLE TAXES INCLUDED)
BRAND DELIVERY
PERIOD
B-BBEE STATUS LEVEL OF
CONTRIBUTION
4. I confirm that I am duly authorized to sign this contract. SIGNED AT ………………………………………ON……………………………….. NAME (PRINT) ……………………………………. SIGNATURE …………………………………….
OFFICIAL STAMP
WITNESSES 1. …………………… 2. …………………. DATE…………………
MBD 7.3
CONTRACT FORM - SALE OF GOODS/WORKS THIS FORM MUST BE FILLED IN DUPLICATE BY BOTH THE SUCCESSFUL BIDDER (PART 1) AND THE SELLER (PART 2). BOTH FORMS MUST BE SIGNED IN THE ORIGINAL SO THAT THE SUCCESSFUL BIDDER AND THE SELLER WOULD BE IN POSSESSION OF ORIGINALLY SIGNED CONTRACTS FOR THEIR RESPECTIVE RECORDS.
PART 1 (TO BE FILLED IN BY THE BIDDER) 7. I hereby undertake to purchase all or any of the goods and/or works described in the attached
bidding documents from (name of institution)……..…..…………………………. in accordance with the requirements stipulated in (bid number)………..……….. at the price/s quoted. My offer/s remain binding upon me and open for acceptance by the seller during the validity period indicated and calculated from the closing time of bid.
8. The following documents shall be deemed to form and be read and construed as part of this
agreement:
(iv) Bidding documents, viz - Invitation to bid; - Tax clearance certificate; - Pricing schedule(s); - Declaration of interest; - Declaration of Bidder’s past SCM practices; - Special Conditions of Contract;
(v) General Conditions of Contract; and (vi) Other (specify)
9. I confirm that I have satisfied myself as to the correctness and validity of my bid; that the price(s)
quoted cover all the goods and/or works specified in the bidding documents; that the price(s) cover all my obligations and I accept that any mistakes regarding price(s) and calculations will be at my own risk.
10. I accept full responsibility for the proper execution and fulfilment of all obligations and conditions
devolving on me under this agreement as the principal liable for the due fulfillment of this contract. 11. I undertake to make payment for the goods/works as specified in the bidding documents.
12. I declare that I have no participation in any collusive practices with any bidder or any other person
regarding this or any other bid. 13. I confirm that I am duly authorised to sign this contract.
NAME (PRINT) …………………………………………. CAPACITY ………………………………………….
SIGNATURE …………………………………………. NAME OF FIRM ………………………………………….
DATE ………………………………………….
WITNESSES 1…….…………….……. 3. …………………. DATE:…………………
MBD 7.3
CONTRACT FORM - SALE OF GOODS/WORKS
PART 2 (TO BE FILLED IN BY THE SELLER)
4. I……………………… in my capacity as…………………………………………………...….. 5.
accept your bid under reference number ………………dated………………………for the purchase of goods/works indicated hereunder and/or further specified in the annexure(s).
6. I undertake to make the goods/works available in accordance with the terms and conditions of the
contract.
ITEM NO.
DESCRIPTION PRICE (ALL APPLICABLE
TAXES INCLUDED)
4. I confirm that I am duly authorized to sign this contract. SIGNED AT ………………………………………ON……………………………….. NAME (PRINT) ……………………………………. SIGNATURE …………………………………….
OFFICIAL STAMP
WITNESSES 3. …………………… 4. …………………… DATE……………………
MBD 8
DECLARATION OF BIDDER’S PAST SUPPLY CHAIN MANAGEMENT PRACTICES
1 This Municipal Bidding Document must form part of all bids invited. 2 It serves as a declaration to be used by municipalities and municipal entities
in ensuring that when goods and services are being procured, all reasonable steps are taken to combat the abuse of the supply chain management system.
3 The bid of any bidder may be rejected if that bidder, or any of its directors
have:
a. abused the municipality’s / municipal entity’s supply chain management system or committed any improper conduct in relation to such system;
b. been convicted for fraud or corruption during the past five years; c. willfully neglected, reneged on or failed to comply with any government,
municipal or other public sector contract during the past five years; or d. been listed in the Register for Tender Defaulters in terms of section 29 of
the Prevention and Combating of Corrupt Activities Act (No 12 of 2004).
4 In order to give effect to the above, the following questionnaire must be completed and submitted with the bid.
Item Question Yes No
4.1 Is the bidder or any of its directors listed on the National Treasury’s Database of Restricted Suppliers as companies or persons prohibited from doing business with the public sector?
(Companies or persons who are listed on this Database were
informed in writing of this restriction by the Accounting
Officer/Authority of the institution that imposed the restriction
after the audi alteram partem rule was applied).
The Database of Restricted Suppliers now resides on the
National Treasury’s website(www.treasury.gov.za) and can be
accessed by clicking on its link at the bottom of the home
page.
Yes
No
4.1.1 If so, furnish particulars:
4.2 Is the bidder or any of its directors listed on the Register for Tender Defaulters in terms of section 29 of the Prevention and Combating of Corrupt Activities Act (No 12 of 2004)? The Register for Tender Defaulters can be accessed on the National Treasury’s website (www.treasury.gov.za) by clicking on its link at the bottom of the home page.
Yes
No
4.2.1 If so, furnish particulars:
4.3 Was the bidder or any of its directors convicted by a court of law (including a court of law outside the Republic of South Africa) for fraud or corruption during the past five years?
Yes
No
4.3.1 If so, furnish particulars:
Item Question Yes No
4.4 Does the bidder or any of its directors owe any municipal rates and taxes or municipal charges to the municipality / municipal entity, or to any other municipality / municipal entity, that is in arrears for more than three months?
Yes
No
4.4.1 If so, furnish particulars:
4.5 Was any contract between the bidder and the municipality / municipal entity or any other organ of state terminated during the past five years on account of failure to perform on or comply with the contract?
Yes
No
4.7.1 If so, furnish particulars:
CERTIFICATION
I, THE UNDERSIGNED (FULL NAME) …………..……………………………..……
CERTIFY THAT THE INFORMATION FURNISHED ON THIS
DECLARATION FORM TRUE AND CORRECT.
I ACCEPT THAT, IN ADDITION TO CANCELLATION OF A CONTRACT, ACTION MAY BE TAKEN AGAINST ME SHOULD THIS DECLARATION PROVE TO BE FALSE.
………………………………………... …………………………..
Signature Date
………………………………………. …………………………..
Position Name of Bidder
MBD 9
CERTIFICATE OF INDEPENDENT BID DETERMINATION
1 This Municipal Bidding Document (MBD) must form part of all bids¹ invited.
2 Section 4 (1) (b) (iii) of the Competition Act No. 89 of 1998, as amended,
prohibits an agreement between, or concerted practice by, firms, or a decision
by an association of firms, if it is between parties in a horizontal relationship and
if it involves collusive bidding (or bid rigging).² Collusive bidding is a pe se
prohibition meaning that it cannot be justified under any grounds.
3 Municipal Supply Regulation 38 (1) prescribes that a supply chain management policy must provide measures for the combating of abuse of the supply chain management system, and must enable the accounting officer, among others, to:
a. take all reasonable steps to prevent such abuse;
b. reject the bid of any bidder if that bidder or any of its directors has abused
the supply chain management system of the municipality or municipal entity or has committed any improper conduct in relation to such system; and
c. cancel a contract awarded to a person if the person committed any corrupt
or fraudulent act during the bidding process or the execution of the contract.
4 This MBD serves as a certificate of declaration that would be used by institutions
to ensure that, when bids are considered, reasonable steps are taken to prevent
any form of bid-rigging.
5 In order to give effect to the above, the attached Certificate of Bid Determination
(MBD 9) must be completed and submitted with the bid:
¹ Includes price quotations, advertised competitive bids, limited bids and proposals.
² Bid rigging (or collusive bidding) occurs when businesses, that would otherwise be expected to compete, secretly
conspire to raise prices or lower the quality of goods and / or services for purchasers who wish to acquire goods and / or
services through a bidding process. Bid rigging is, therefore, an agreement between competitors not to compete.
MBD 9
CERTIFICATE OF INDEPENDENT BID DETERMINATION
I, the undersigned, in submitting the accompanying bid:
____________________________________________________________________
(Bid Number and Description)
in response to the invitation for the bid made by:
_____________________________________________________________________
(Name of Municipality / Municipal Entity)
do hereby make the following statements that I certify to be true and complete in every
respect:
I certify, on behalf
of:_______________________________________________________that:
(Name of Bidder)
1. I have read and I understand the contents of this Certificate;
2. I understand that the accompanying bid will be disqualified if this Certificate is found not
to be true and complete in every respect;
3. I am authorized by the bidder to sign this Certificate, and to submit the accompanying
bid, on behalf of the bidder;
4. Each person whose signature appears on the accompanying bid has been authorized by
the bidder to determine the terms of, and to sign, the bid, on behalf of the bidder;
5. For the purposes of this Certificate and the accompanying bid, I understand that the
word “competitor” shall include any individual or organization, other than the bidder,
whether or not affiliated with the bidder, who:
(a) has been requested to submit a bid in response to this bid invitation;
(b) could potentially submit a bid in response to this bid invitation, based on
their qualifications, abilities or experience; and
(c) provides the same goods and services as the bidder and/or is in the same
line of business as the bidder
MBD 9
6. The bidder has arrived at the accompanying bid independently from, and without
consultation, communication, agreement or arrangement with any competitor. However
communication between partners in a joint venture or consortium³ will not be construed
as collusive bidding.
7. In particular, without limiting the generality of paragraphs 6 above, there has been no
consultation, communication, agreement or arrangement with any competitor regarding:
(a) prices;
(b) geographical area where product or service will be rendered (market
allocation)
(c) methods, factors or formulas used to calculate prices;
(d) the intention or decision to submit or not to submit, a bid;
(e) the submission of a bid which does not meet the specifications and
conditions of the bid; or
(f) bidding with the intention not to win the bid.
8. In addition, there have been no consultations, communications, agreements or
arrangements with any competitor regarding the quality, quantity, specifications and
conditions or delivery particulars of the products or services to which this bid invitation
relates.
9. The terms of the accompanying bid have not been, and will not be, disclosed by the
bidder, directly or indirectly, to any competitor, prior to the date and time of the official bid
opening or of the awarding of the contract.
³ Joint venture or Consortium means an association of persons for the purpose of combining their expertise, property, capital, efforts, skill and knowledge in an activity for the execution of a contract.
MBD 9
10. I am aware that, in addition and without prejudice to any other remedy provided to
combat any restrictive practices related to bids and contracts, bids that are suspicious
will be reported to the Competition Commission for investigation and possible imposition
of administrative penalties in terms of section 59 of the Competition Act No 89 of 1998
and or may be reported to the National Prosecuting Authority (NPA) for criminal
investigation and or may be restricted from conducting business with the public sector
for a period not exceeding ten (10) years in terms of the Prevention and Combating of
Corrupt Activities Act No 12 of 2004 or any other applicable legislation.
………………………………………………… …………………………………
Signature Date
…………………………………………………. …………………………………
Position Name of Bidder
Js9141w 4
THE NATIONAL TREASURY
Republic of South Africa
GOVERNMENT PROCUREMENT: GENERAL
CONDITIONS OF CONTRACT
July 2010
GOVERNMENT PROCUREMENT
GENERAL CONDITIONS OF CONTRACT
July 2010
NOTES
The purpose of this document is to:
(i) Draw special attention to certain general conditions
applicable to government bids, contracts and orders; and
(ii) To ensure that clients be familiar with regard to the rights
and obligations of all parties involved in doing business
with government.
In this document words in the singular also mean in the plural
and vice versa and words in the masculine also mean in the
feminine and neuter.
The General Conditions of Contract will form part of
all bid documents and may not be amended.
Special Conditions of Contract (SCC) relevant to a specific
bid, should be compiled separately for every bid (if
(applicable) and will supplement the General Conditions
of Contract. Whenever there is a conflict, the provisions
in the SCC shall prevail.
TABLE OF CLAUSES
1. Definitions
2. Application 3. General
4. Standards
5. Use of contract documents and information; inspection
6. Patent rights
7. Performance security
8. Inspections, tests and analysis
9. Packing 10. Delivery and documents
11. Insurance
12. Transportation 13. Incidental services
14. Spare parts
15. Warranty 16. Payment
17. Prices
18. Contract amendments
19. Assignment 20. Subcontracts
21. Delays in the supplier’s performance
22. Penalties 23. Termination for default
24. Dumping and countervailing duties
25. Force Majeure 26. Termination for insolvency
27. Settlement of disputes
28. Limitation of liability 29. Governing language
30. Applicable law
31. Notices 32. Taxes and duties
33. National Industrial Participation Programme (NIPP)
34. Prohibition of restrictive practices
General Conditions of Contract
1. Definitions 1. The following terms shall be interpreted as indicated:
1.1 “Closing time” means the date and hour specified in the bidding
documents for the receipt of bids.
1.2 “Contract” means the written agreement entered into between the
purchaser and the supplier, as recorded in the contract form signed by
the parties, including all attachments and appendices thereto and all
documents incorporated by reference therein.
1.3 “Contract price” means the price payable to the supplier under the
contract for the full and proper performance of his contractual
obligations.
1.4 “Corrupt practice” means the offering, giving, receiving, or soliciting
of any thing of value to influence the action of a public official in the
procurement process or in contract execution.
1.5 "Countervailing duties" are imposed in cases where an enterprise
abroad is subsidized by its government and encouraged to market its
products internationally.
1.6 “Country of origin” means the place where the goods were mined,
grown or produced or from which the services are supplied. Goods are
produced when, through manufacturing, processing or substantial and
major assembly of components, a commercially recognized new
product results that is substantially different in basic characteristics or
in purpose or utility from its components.
1.7 “Day” means calendar day.
1.8 “Delivery” means delivery in compliance of the conditions of the
contract or order.
1.9 “Delivery ex stock” means immediate delivery directly from stock
actually on hand.
1.10 “Delivery into consignees store or to his site” means delivered and
unloaded in the specified store or depot or on the specified site in
compliance with the conditions of the contract or order, the supplier
bearing all risks and charges involved until the supplies are so
delivered and a valid receipt is obtained.
1.11 "Dumping" occurs when a private enterprise abroad market its goods
on own initiative in the RSA at lower prices than that of the country of
origin and which have the potential to harm the local industries in the
RSA.
1.12 ”Force majeure” means an event beyond the control of the supplier and
not involving the supplier’s fault or negligence and not foreseeable.
Such events may include, but is not restricted to, acts of the purchaser
in its sovereign capacity, wars or revolutions, fires, floods, epidemics,
quarantine restrictions and freight embargoes.
1.13 “Fraudulent practice” means a misrepresentation of facts in order to
influence a procurement process or the execution of a contract to the
detriment of any bidder, and includes collusive practice among bidders
(prior to or after bid submission) designed to establish bid prices at
artificial non-competitive levels and to deprive the bidder of the
benefits of free and open competition.
1.14 “GCC” means the General Conditions of Contract.
1.15 “Goods” means all of the equipment, machinery, and/or other materials
that the supplier is required to supply to the purchaser under the
contract.
1.16 “Imported content” means that portion of the bidding price represented
by the cost of components, parts or materials which have been or are
still to be imported (whether by the supplier or his subcontractors) and
which costs are inclusive of the costs abroad, plus freight and other
direct importation costs such as landing costs, dock dues, import duty,
sales duty or other similar tax or duty at the South African place of
entry as well as transportation and handling charges to the factory in
the Republic where the supplies covered by the bid will be
manufactured.
1.17 “Local content” means that portion of the bidding price which is not
included in the imported content provided that local manufacture does
take place.
1.18 “Manufacture” means the production of products in a factory using
labour, materials, components and machinery and includes other
related value-adding activities.
1.19 “Order” means an official written order issued for the supply of goods
or works or the rendering of a service.
1.20 “Project site,” where applicable, means the place indicated in bidding
documents.
1.21 “Purchaser” means the organization purchasing the goods.
1.22 “Republic” means the Republic of South Africa.
1.23 “SCC” means the Special Conditions of Contract.
1.24 “Services” means those functional services ancillary to the supply of
the goods, such as transportation and any other incidental services,
such as installation, commissioning, provision of technical assistance,
training, catering, gardening, security, maintenance and other such
obligations of the supplier covered under the contract.
1.25 “Written” or “in writing” means handwritten in ink or any form of
electronic or mechanical writing.
2. Application 2.1 These general conditions are applicable to all bids, contracts and orders
including bids for functional and professional services, sales, hiring,
letting and the granting or acquiring of rights, but excluding
immovable property, unless otherwise indicated in the bidding
documents.
2.2 Where applicable, special conditions of contract are also laid down to
cover specific supplies, services or works.
2.3 Where such special conditions of contract are in conflict with these
general conditions, the special conditions shall apply.
3. General 3.1 Unless otherwise indicated in the bidding documents, the purchaser
shall not be liable for any expense incurred in the preparation and
submission of a bid. Where applicable a non-refundable fee for
documents may be charged.
3.2 With certain exceptions, invitations to bid are only published in the
Government Tender Bulletin. The Government Tender Bulletin may be
obtained directly from the Government Printer, Private Bag X85, Pretoria
0001, or accessed electronically from www.treasury.gov.za
4. Standards 4.1 The goods supplied shall conform to the standards mentioned in the
bidding documents and specifications.
5. Use of
contract
documents
and
information;
inspection.
5.1 The supplier shall not, without the purchaser’s prior written consent,
disclose the contract, or any provision thereof, or any specification,
plan, drawing, pattern, sample, or information furnished by or on
behalf of the purchaser in connection therewith, to any person other
than a person employed by the supplier in the performance of the
contract. Disclosure to any such employed person shall be made in
confidence and shall extend only so far as may be necessary for
purposes of such performance.
5.2 The supplier shall not, without the purchaser’s prior written consent,
make use of any document or information mentioned in GCC clause
5.1 except for purposes of performing the contract.
5.3 Any document, other than the contract itself mentioned in GCC clause
5.1 shall remain the property of the purchaser and shall be returned (all
copies) to the purchaser on completion of the supplier’s performance under
the contract if so required by the purchaser.
5.4 The supplier shall permit the purchaser to inspect the supplier’s records
relating to the performance of the supplier and to have them audited by
auditors appointed by the purchaser, if so required by the purchaser.
6. Patent rights 6.1 The supplier shall indemnify the purchaser against all third-party
claims of infringement of patent, trademark, or industrial design rights
arising from use of the goods or any part thereof by the purchaser.
7. Performance
security 7.1 Within thirty (30) days of receipt of the notification of contract award,
the successful bidder shall furnish to the purchaser the performance
security of the amount specified in SCC.
7.2 The proceeds of the performance security shall be payable to the
purchaser as compensation for any loss resulting from the supplier’s
failure to complete his obligations under the contract.
7.3 The performance security shall be denominated in the currency of the
contract, or in a freely convertible currency acceptable to the purchaser
and shall be in one of the following forms:
(a) a bank guarantee or an irrevocable letter of credit issued by a
reputable bank located in the purchaser’s country or abroad,
acceptable to the purchaser, in the form provided in the
bidding documents or another form acceptable to the
purchaser; or
(b) a cashier’s or certified cheque
7.4 The performance security will be discharged by the purchaser and
returned to the supplier not later than thirty (30) days following the
date of completion of the supplier’s performance obligations under the
contract, including any warranty obligations, unless otherwise
specified in SCC.
8. Inspections,
tests and
analyses
8.1 All pre-bidding testing will be for the account of the bidder.
8.2 If it is a bid condition that supplies to be produced or services to be
rendered should at any stage during production or execution or on
completion be subject to inspection, the premises of the bidder or
contractor shall be open, at all reasonable hours, for inspection by a
representative of the Department or an organization acting on behalf of
the Department.
8.3 If there are no inspection requirements indicated in the bidding
documents and no mention is made in the contract, but during the
contract period it is decided that inspections shall be carried out, the
purchaser shall itself make the necessary arrangements, including
payment arrangements with the testing authority concerned.
8.4 If the inspections, tests and analyses referred to in clauses 8.2 and 8.3
show the supplies to be in accordance with the contract requirements,
the cost of the inspections, tests and analyses shall be defrayed by the
purchaser.
8.5 Where the supplies or services referred to in clauses 8.2 and 8.3 do not
comply with the contract requirements, irrespective of whether such
supplies or services are accepted or not, the cost in connection with
these inspections, tests or analyses shall be defrayed by the supplier.
8.6 Supplies and services which are referred to in clauses 8.2 and 8.3 and
which do not comply with the contract requirements may be rejected.
8.7 Any contract supplies may on or after delivery be inspected, tested or
analyzed and may be rejected if found not to comply with the requirements of the contract. Such
rejected supplies shall be held at the cost and risk of the supplier who shall, when called upon, remove
them immediately at his own cost and forthwith substitute them with supplies which do comply
with the requirements of the contract. Failing such removal the rejected supplies shall be returned
at the suppliers cost and risk. Should the supplier fail to provide the substitute supplies forthwith,
the purchaser may, without giving the supplier further opportunity to substitute the rejected
supplies, purchase such supplies as may be necessary at the expense of the supplier.
8.8The provisions of clauses 8.4 to 8.7 shall not prejudice the right of the purchaser to cancel the
contract on account of a breach of the conditions thereof, or to act in terms of Clause 23 of GCC.
9. Packing
9.1 The supplier shall provide such packing of the goods as is required to prevent their
damage or deterioration during transit to their final destination, as indicated in the contract. The
packing shall be sufficient to withstand, without limitation, rough handling during transit and
exposure to extreme temperatures, salt and precipitation during transit, and open storage. Packing,
case size and weights shall take into consideration, where appropriate, the remoteness of the goods’
final destination and the absence of heavy handling facilities at all points in transit.
9.2 The packing, marking, and documentation within and outside the packages shall comply strictly
with such special requirements as shall be expressly provided for in the contract, including
additional requirements, if any, specified in SCC, and in any subsequent instructions ordered by
the purchaser.
10. Delivery
and documents 10.1 Delivery of the goods shall be made by the supplier in accordance with
the terms specified in the contract. The details of shipping and/or other
documents to be furnished by the supplier are specified in SCC.
10.2 Documents to be submitted by the supplier are specified in SCC.
11. Insurance 11.1 The goods supplied under the contract shall be fully insured in a freely
convertible currency against loss or damage incidental to manufacture
or acquisition, transportation, storage and delivery in the manner
specified in the SCC.
12. Transportation
12.1 Should a price other than an all-inclusive delivered price be
required, this shall be specified in the SCC.
13. Incidental
services 13.1 The supplier may be required to provide any or all of the following
services, including additional services, if any, specified in SCC:
(a) performance or supervision of on-site assembly and/or
commissioning of the supplied goods;
(b) furnishing of tools required for assembly and/or maintenance
of the supplied goods;
(c) furnishing of a detailed operations and maintenance manual
for each appropriate unit of the supplied goods;
(d) performance or supervision or maintenance and/or repair of
the supplied goods, for a period of time agreed by the parties,
provided that this service shall not relieve the supplier of any
warranty obligations under this contract; and
(e) training of the purchaser’s personnel, at the supplier’s plant
and/or on-site, in assembly, start-up, operation,
maintenance, and/or repair of the supplied goods.
13.2 Prices charged by the supplier for incidental services, if not included in
the contract price for the goods, shall be agreed upon in advance by the
parties and shall not exceed the prevailing rates charged to other
parties by the supplier for similar services.
14. Spare parts 14.1 As specified in SCC, the supplier may be required to provide any or all
of the following materials, notifications, and information pertaining to
spare parts manufactured or distributed by the supplier:
(a) such spare parts as the purchaser may elect to purchase from the
supplier, provided that this election shall not relieve the supplier
of any warranty obligations under the contract; and
(b) in the event of termination of production of the spare parts:
(i) Advance notification to the purchaser of the pending
termination, in sufficient time to permit the purchaser to
procure needed requirements; and
(ii) following such termination, furnishing at no cost to the
purchaser, the blueprints, drawings, and specifications of the
spare parts, if requested.
15. Warranty 15.1 The supplier warrants that the goods supplied under the contract are
new, unused, of the most recent or current models, and that they
incorporate all recent improvements in design and materials unless
provided otherwise in the contract. The supplier further warrants that
all goods supplied under this contract shall have no defect, arising from
design, materials, or workmanship (except when the design and/or
material is required by the purchaser’s specifications) or from any act
or omission of the supplier, that may develop under normal use of the
supplied goods in the conditions prevailing in the country of final
destination.
15.2 This warranty shall remain valid for twelve (12) months after the
goods, or any portion thereof as the case may be, have been delivered
to and accepted at the final destination indicated in the contract, or for
eighteen (18) months after the date of shipment from the port or place
of loading in the source country, whichever period concludes earlier,
unless specified otherwise in SCC.
15.3 The purchaser shall promptly notify the supplier in writing of any
claims arising under this warranty.
15.4 Upon receipt of such notice, the supplier shall, within the period
specified in SCC and with all reasonable speed, repair or replace the
defective goods or parts thereof, without costs to the purchaser.
15.5 If the supplier, having been notified, fails to remedy the defect(s)
within the period specified in SCC, the purchaser may proceed to take
such remedial action as may be necessary, at the supplier’s risk
and expense and without prejudice to any other rights which the
purchaser may have against the supplier under the contract.
16. Payment 16.1 The method and conditions of payment to be made to the supplier
under this contract shall be specified in SCC.
16.2 The supplier shall furnish the purchaser with an invoice accompanied
by a copy of the delivery note and upon fulfillment of other obligations
stipulated in the contract.
16.3 Payments shall be made promptly by the purchaser, but in no case later
than thirty (30) days after submission of an invoice or claim by the
supplier.
16.4 Payment will be made in Rand unless otherwise stipulated in SCC.
17. Prices 17.1 Prices charged by the supplier for goods delivered and services
performed under the contract shall not vary from the prices quoted by
the supplier in his bid, with the exception of any price adjustments
authorized in SCC or in the purchaser’s request for bid validity
extension, as the case may be.
18. Contract
amendments 18.1 No variation in or modification of the terms of the contract shall be
made except by written amendment signed by the parties concerned.
19. Assignment 19.1 The supplier shall not assign, in whole or in part, its obligations to
perform under the contract, except with the purchaser’s prior written
consent.
20. Subcontracts 20.1 The supplier shall notify the purchaser in writing of all subcontracts
awarded under this contracts if not already specified in the bid. Such
notification, in the original bid or later, shall not relieve the supplier
from any liability or obligation under the contract.
21. Delays in the
supplier’s
performance
21.1 Delivery of the goods and performance of services shall be made by
the supplier in accordance with the time schedule prescribed by the
purchaser in the contract.
21.2 If at any time during performance of the contract, the supplier or its
subcontractor(s) should encounter conditions impeding timely delivery
of the goods and performance of services, the supplier shall promptly
notify the purchaser in writing of the fact of the delay, its likely
duration and its cause(s). As soon as practicable after receipt of the
supplier’s notice, the purchaser shall evaluate the situation and may at
his discretion extend the supplier’s time for performance, with or
without the imposition of penalties, in which case the extension shall
be ratified by the parties by amendment of contract.
21.3 No provision in a contract shall be deemed to prohibit the obtaining of
supplies or services from a national department, provincial department,
or a local authority.
21.4 The right is reserved to procure outside of the contract small quantities
or to have minor essential services executed if an emergency arises, the
supplier’s point of supply is not situated at or near the place where the
supplies are required, or the supplier’s services are not readily
available.
21.5 Except as provided under GCC Clause 25, a delay by the supplier in
the performance of its delivery obligations shall render the supplier
liable to the imposition of penalties, pursuant to GCC Clause 22,
unless an extension of time is agreed upon pursuant to GCC Clause
21.2 without the application of penalties.
21.6 Upon any delay beyond the delivery period in the case of a supplies
contract, the purchaser shall, without canceling the contract, be entitled
to purchase supplies of a similar quality and up to the same quantity in
substitution of the goods not supplied in conformity with the contract
and to return any goods delivered later at the supplier’s expense and
risk, or to cancel the contract and buy such goods as may be required
to complete the contract and without prejudice to his other rights, be
entitled to claim damages from the supplier.
22. Penalties 22.1 Subject to GCC Clause 25, if the supplier fails to deliver any or all of
the goods or to perform the services within the period(s) specified in
the contract, the purchaser shall, without prejudice to its other remedies
under the contract, deduct from the contract price, as a penalty, a sum
calculated on the delivered price of the delayed goods or unperformed
services using the current prime interest rate calculated for each day of
the delay until actual delivery or performance. The purchaser may also
consider termination of the contract pursuant to GCC Clause 23.
23. Termination
for default 23.1 The purchaser, without prejudice to any other remedy for breach of
contract, by written notice of default sent to the supplier, may
terminate this contract in whole or in part:
(a) if the supplier fails to deliver any or all of the goods within
the period(s) specified in the contract, or within any
extension thereof granted by the purchaser pursuant to GCC
Clause 21.2;
(b) if the Supplier fails to perform any other obligation(s) under
the contract; or
(c) if the supplier, in the judgment of the purchaser, has
engaged in corrupt or fraudulent practices in competing for
or in executing the contract.
23.2 In the event the purchaser terminates the contract in whole or in part,
the purchaser may procure, upon such terms and in such manner as it
deems appropriate, goods, works or services similar to those undelivered,
and the supplier shall be liable to the purchaser for any excess costs for
such similar goods, works or services. However, the supplier shall
continue performance of the contract to the extent not terminated.
23.3 Where the purchaser terminates the contract in whole or in part, the
purchaser may decide to impose a restriction penalty on the supplier by
prohibiting such supplier from doing business with the public sector for a
period not exceeding 10 years.
23.4 If a purchaser intends imposing a restriction on a supplier or any
person associated with the supplier, the supplier will be allowed a time
period of not more than fourteen (14) days to provide reasons why the
envisaged restriction should not be imposed. Should the supplier fail to
respond within the stipulated fourteen (14) days the purchaser may regard the
intended penalty as not objected against and may impose it on the
supplier.
23.5 Any restriction imposed on any person by the Accounting Officer /
Authority will, at the discretion of the Accounting Officer / Authority,
also be applicable to any other enterprise or any partner, manager,
director or other person who wholly or partly exercises or exercised or
may exercise control over the enterprise of the first-mentioned person,
and with which enterprise or person the first-mentioned person, is or was
in the opinion of the Accounting Officer / Authority actively associated.
23.6 If a restriction is imposed, the purchaser must, within five (5) working
days of such imposition, furnish the National Treasury, with the
following information:
(i) the name and address of the supplier and / or person restricted by the
purchaser;
(ii) the date of commencement of the restriction
(iii) the period of restriction; and
(iv) the reasons for the restriction.
These details will be loaded in the National Treasury’s central database
of suppliers or persons prohibited from doing business with the public
sector.
23.7 If a court of law convicts a person of an offence as contemplated in
sections 12 or 13 of the Prevention and Combating of Corrupt Activities
Act, No. 12 of 2004, the court may also rule that such person’s name be
endorsed on the Register for Tender Defaulters. When a person’s name
has been endorsed on the Register, the person will be prohibited from
doing business with the public sector for a period not less than five years
and not more than 10 years. The National Treasury is empowered to
determine the period of restriction and each case will be dealt with on its
own merits. According to section 32 of the Act the Register must be
open to the public. The Register can be perused on the National Treasury
website.
24. Anti-dumping
and countervailing
duties and rights
24.1 When, after the date of bid, provisional payments are required, or anti-
dumping or countervailing duties are imposed, or the amount of a
provisional payment or anti-dumping or countervailing right is
increased in respect of any dumped or subsidized import, the State is
not liable for any amount so required or imposed, or for the amount of
any such increase. When, after the said date, such a provisional
payment is no longer required or any such anti-dumping or
countervailing right is abolished, or where the amount of such
provisional payment or any such right is reduced, any such favourable
difference shall on demand be paid forthwith by the contractor to the
State or the State may deduct such amounts from moneys (if any)
which may otherwise be due to the contractor in regard to supplies or
services which he delivered or rendered, or is to deliver or render in
terms of the contract or any other contract or any other amount which
may be due to him
25. Force
Majeure 25.1 Notwithstanding the provisions of GCC Clauses 22 and 23, the
supplier shall not be liable for forfeiture of its performance security,
damages, or termination for default if and to the extent that his delay in
performance or other failure to perform his obligations under the
contract is the result of an event of force majeure.
25.2 If a force majeure situation arises, the supplier shall promptly notify
the purchaser in writing of such condition and the cause thereof.
Unless otherwise directed by the purchaser in writing, the supplier
shall continue to perform its obligations under the contract as far as is
reasonably practical, and shall seek all reasonable alternative means for
performance not prevented by the force majeure event.
26. Termination
for insolvency 26.1 The purchaser may at any time terminate the contract by giving written
notice to the supplier if the supplier becomes bankrupt or otherwise
insolvent. In this event, termination will be without compensation to
the supplier, provided that such termination will not prejudice or affect
any right of action or remedy which has accrued or will accrue
thereafter to the purchaser.
27. Settlement of
Disputes
28. Limitation of
liability
27.1 If any dispute or difference of any kind whatsoever arises between the
purchaser and the supplier in connection with or arising out of the
contract, the parties shall make every effort to resolve amicably such
dispute or difference by mutual consultation.
27.2 If, after thirty (30) days, the parties have failed to resolve their dispute
or difference by such mutual consultation, then either the purchaser or
the supplier may give notice to the other party of his intention to
commence with mediation. No mediation in respect of this matter may
be commenced unless such notice is given to the other party.
27.3 Should it not be possible to settle a dispute by means of mediation, it
may be settled in a South African court of law.
27.4 Mediation proceedings shall be conducted in accordance with the rules
of procedure specified in the SCC.
27.5 Notwithstanding any reference to mediation and/or court proceedings
herein,
(a) the parties shall continue to perform their respective obligations
under the contract unless they otherwise agree; and
(b) the purchaser shall pay the supplier any monies due the supplier.
28.1 Except in cases of criminal negligence or willful misconduct, and in
the case of infringement pursuant to Clause 6;
(a) the supplier shall not be liable to the purchaser, whether in
contract, tort, or otherwise, for any indirect or consequential loss
or damage, loss of use, loss of production, or loss of profits or
interest costs, provided that this exclusion shall not apply to any
obligation of the supplier to pay penalties and/or damages to the
purchaser; and
29. Governing
language
(b) the aggregate liability of the supplier to the purchaser, whether
under the contract, in tort or otherwise, shall not exceed the total
contract price, provided that this limitation shall not apply to the
cost of repairing or replacing defective equipment.
29.1 The contract shall be written in English. All correspondence and other
documents pertaining to the contract that is exchanged by the parties shall
also be written in English.
30. .
Applicable law 30.1 The contract shall be interpreted in accordance with South African
laws, unless otherwise specified in SCC.
31. Notices 31.1 Every written acceptance of a bid shall be posted to the supplier
concerned by registered or certified mail and any other notice to him
shall be posted by ordinary mail to the address furnished in his bid or
to the address notified later by him in writing and such posting shall be
deemed to be proper service of such notice
31.2 The time mentioned in the contract documents for performing any act
after such aforesaid notice has been given, shall be reckoned from the date
of posting of such notice.
32. Taxes and
duties 32.1 A foreign supplier shall be entirely responsible for all taxes, stamp
duties, license fees, and other such levies imposed outside the
purchaser’s country.
32.2 A local supplier shall be entirely responsible for all taxes, duties,
license fees, etc., incurred until delivery of the contracted goods to
the purchaser.
32.3 No contract shall be concluded with any bidder whose tax matters are
not in order. Prior to the award of a bid the Department must be in
possession of a tax clearance certificate, submitted by the bidder.
This certificate must be an original issued by the South African
Revenue Services.
33.National
Industrial
Participation (NIP)
Programme
34 Prohibition of
Restrictive practices
33.1 The NIP Programme administered by the Department of Trade and
Industry shall be applicable to all contracts that are subject to the NIP
obligation.
34.1 In terms of section 4 (1) (b) (iii) of the Competition Act No. 89 of
1998, as amended, an agreement between, or concerted practice by,
firms, or a decision by an association of firms, is prohibited if it is
between parties in a horizontal relationship and if a bidder (s) is / are
or a contractor(s) was / were involved in collusive bidding (or bid
rigging).
34.2 If a bidder(s) or contractor(s), based on reasonable grounds or
evidence obtained by the purchaser, has / have engaged in the
restrictive practice referred to above, the purchaser may refer the
matter to the Competition Commission for investigation and possible
imposition of administrative penalties as contemplated in the
Competition Act No. 89 of 1998.
34.3 If a bidder(s) or contractor(s), has / have been found guilty by the Competition
Commission of the restrictive practice referred to above, the purchaser may, in
addition and without prejudice to any other remedy provided for, invalidate the
bid(s) for such item(s) offered, and / or terminate the contract in whole or part,
and / or restrict the bidder(s) or contractor(s) from conducting business with the
public sector for a period not exceeding ten (10) years and / or claim damages from
the bidder(s) or contractor(s) concerned.
Js General Conditions of Contract (revised July 2010)
